Recursion Pharma slides on deep-discounted $200 mln stock offering

Recursion Pharmaceuticals

27/06/2024 11:14

** Shares of Recursion Pharmaceuticals  RXRX.O  down 14.8%
premarket at $7.46, a 2-mth low, after overnight follow-on
priced
    ** RXRX, which uses AI to discover new drug candidates, said
late Weds it sold ~30.8 mln shares at $6.50 for $200 mln gross
proceeds
    ** Offering priced at 25.8% discount to stock's last sale,
represents ~13% of co's total shares outstanding
    ** Goldman Sachs and JP Morgan lead-bookrunners, joined by
Allen & Co
    ** RXRX intends to use net proceeds to fund advancement of
preclinical/clinical programs and platform technologies, for
potential strategic investments/acquisitions and other uses, per
the SEC prospectus filing
     ** On Mon, RXRX held its investor day event, which also
featured fireside chat with Nvidia  NVDA.O  CEO Jensen Huang
(Click here for RXRX presentation)
    ** Last month, RXRX announced completion of NVDA-powered
supercomputer BioHive-2, the largest in the pharma industry
    ** Last Jul, NVDA invested in RXRX and owns ~7.7 mln shares
for ~3.4% stake, per LSEG
    ** Through Weds, RXRX shares down 11% YTD. Stock's 52-week
high is $16.75 (Jul 19, 2023) and 1-yr low is $4.97 (Nov 1,
2023)

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))